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Horizon Petroleum Ltd (HPL.V)
Opportunity to Invest in a Large Polish Natural Gas Development with Significant Reserves
Highlights
100% owner of two concessions with 2P reserves value of US$ 84.5 million and risked 2C contingent resources value of US$ 431 million.
Shovel ready, low risk, initial workover program delivering first cashflow within 12 months.
Full field development will generate an estimated US$ 100 million per year of operating cash flow within 42 months (pre-farm-in)
A Joint Venture partner farm-in will move the full field development to self-financing with no additional equity financing required beyond the initial investment of $US 7.3 million.
Summary
Horizon holds a 100% interest in two concessions awarded November 2024, Bielsko-Biala and Cieszyn concessions covering 1,130km2 in SW Poland
Excellent macro-environment in Poland with gas prices of US$11-US$15/mcf over the last few years. Poland needs to replace Russian gas and highly polluting Polish coal for heating and electricity production. Poland currently generates less than half of all energy it consumes.
The Bielsko-Biala Concession contains one of the largest (>1.2TCF) undeveloped gas fields (Lachowice) in Poland and Eastern Europe and was discovered in 1984.
Appraisal of the discovery completed in 1986-97 with 6 additional wells. Independent Reserve evaluation:
2P Reserves: 34 bcfe - BTax NPV10 US$ 84.5 million,
Risked 2C Contingent Resources: 163 bcfe – Btax NPV10 US$431 million
US$ 7.3 million funds (net of financing costs) are required for the following initial development:
US$1.1MM to pay the original owner of the concessions
US$2MM to re-enter and re-test a currently suspended well (well tested at rates as high as 8.9mmscf/d). All required approvals and permits in place. “Shovel ready” project.
US$3MM for infrastructure to place the well on production
US$1.2MM for G&A in Canada and Poland
Forecast operating cashflow from initial investment is ~US$5MM/yr starting within 12 months of well re-entry.
Full field development to start within 12 months including new well drilling and gas processing facilities and gas sales pipeline. The full development will be farmed out to a Joint Venture partner. Forecast peak production in 2028 of >40mmscf/d generating >US$100MM/yr net operating cash-flow to Horizon (pre-farm-in).
Future field development would be self-financing after the initial 2 wells are drilled
Our second concession, Cieszyn, will generate cash-flow from shallow, inexpensive wells in a very under-explored area where there are 2 shallow gas fields that have produced ~10bcf of gas. (fields discovered in 1940/1950’s). Cieszyn is on trend with analogue fields across the border in Czechia that have produced ~100bcfe.
Accessible gas take-away infrastructure and capacity exists in both concessions
Management team with deep expertise and experience in international oil and gas development, particularly in central/east Europe including Poland.
Current Horizon market capitalisation: US$5 million. New investors entering to fund initial development program enter at the same price as earlier stage investors.
Exposure to huge share price appreciation potential.
Shares outstanding: 58,206,940 (59,326,940 fully diluted)
Legal Notices, Risk Advisories: Please see the Appendix of our corporate presentation provided to you for a list of risk factors and disclaimers relating to investments in Horizon Petroleum Ltd.